insurance · 2009. 10. 30. · unappro-priated profit total..... (rupees in thousand) ........

Insurance

C O N D E N S E D I N T E R I MF I N A N C I A L I N F O R M AT I O N

F O R T H E N I N E M O N T H S P E R I O DE N D E D 3 0 S E P T E M B E R 2 0 0 9

Insurance

Contents

Company Information

02

Directors’ Report to the Shareholders

03

Balance Sheet

04

Profit and Loss Account

06

Statement of Changes in Equity

07

Cash Flow Statement

08

Statement of Premiums

10

Statement of Claims

11

Statement of Expenses

12

Statement of Investment Income

13

Notes to the Financial Statements

14

IGI Offices

18

02

Insurance

COMPANY INFORMATION

Board of DirectorsSyed Babar Ali (Chairman)Shamim Ahmad KhanSyed Kamal AliSyed Yawar AliSyed Shahid AliSyed Hyder AliWaqar Ahmed MalikJalees Ahmed Siddiqi (Chief Executive Officer)

Chief Executive OfficerJalees Ahmed Siddiqi

Chief Financial OfficerMuhammad Kashif Nisar

Company SecretaryHaider Raza

Audit CommitteeShamim Ahmad Khan (Chairman)Syed Yawar AliSyed Hyder AliAkhtar Abbas (Secretary)

Investment CommitteeSyed Hyder Ali (Chairman)Syed Kamal AliSyed Yawar AliShamim Ahmad KhanJalees Ahmed SiddiqiMuhammad Kashif Nisar (Secretary)

Claims CommitteeShamim Ahmad Khan (Chairman)Shahbaz Haider AghaMuhammad Kashif NisarMir Mehmood Ali (Secretary)

Underwriting CommitteeSyed Hyder Ali (Chairman)Shahbaz Haider AghaSalim IqbalSyed Matin AhmedHaider AliYasmin Sadiq (Secretary)

Re-Insurance & Co-Insurance CommitteeSyed Hyder Ali (Chairman)Jalees Ahmed SiddiqiSalim IqbalFaisal Khan (Secretary)

Human Resource & Compensation CommitteeSyed Yawar Ali (Chairman)Syed Shahid AliSyed Hyder AliWaqar Ahmed MalikJalees Ahmed Siddiqi (Secretary)

Strategy CommitteeSyed Babar Ali (Chairman)Shamim Ahmad KhanSyed Yawar AliSyed Hyder AliWaqar Ahmed MalikJalees Ahmed Siddiqi (Secretary)

AuditorsKPMG Taseer Hadi & Co.Chartered Accountants

Legal AdvisorRamday Law AssociateHassan & HassanLari & CompanyJ. H. Rahimtoola and CompanyAdvocate

BankersThe Royal Bank of Scotland LimitedAllied Bank of Pakistan LimitedBank Alfalah LimitedDubai Islamic Bank Pakistan LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedJS Bank LimitedKASB Bank LimitedMCB Bank LimitedStandard Chartered Bank (Pakistan) LimitedUnited Bank Limited

Share RegistrarFAMCO Associates (Private) Limited(Formerly Ferguson Associates (Private) Limited)

State Life Building No. 2A,4th Floor, I.I. Chundrigar Road,PO. Box # 4716Karachi - Pakistan

Registered & Head Office7th Floor, The Forum,Suite Nos. 701-713, G-20, Block 9,Khayaban-e-Jami, Clifton,Karachi-75600, Pakistan

Web Presencewww.igiinsurance.com.pk

ContactUAN: 111-234-234Toll Free No. 0800-2-34-34Fax: 92-21-5301772

03

Insurance

The Board of Directors of IGI Insurance Limited is pleased to present the un-audited condensed interimfinancial statements for the nine months ended 30 September 2009.

During the period under review, despite challenging market situation, the Company maintained its operationalperformance, achieving an increase of 17% in Gross Written Premium from Rs. 817 million in 2008 toRs. 952 million in 2009. This was led by motor segment which registered an increase of 34% over thecorresponding period 2008. The reduced net claims further contributed to higher underwriting profit whichwent up to Rs. 213 million from Rs. 170 million in 2008, depicting a healthy growth of 26%. The periodwitnessed sharp recovery in equity markets which helped Company's investments to cover some of itsprevious losses. Dividend income, higher by Rs. 102 million over the same period last year, also contributedto positive cash flows.

The share of profit of associates boosted the Company's overall profitability to Rs. 818 million in the periodunder review. This exceptional increase in profitability represents the Company's share in gain on disposalof investments by Packages Limited. Consequently, earning per share for the nine months ending 30 September2009 is Rs. 13.65 against Rs. 1.75 for the corresponding period 2008.

Conscious of the macro economic challenges currently being faced by the economy, we will continue tostrive hard to sustain our performance in the coming months.

We acknowledge and thank our business partners, customers and all stakeholders for their continued patronageand the Company employees for their dedicated efforts, making it possible to achieve these results.

For and on behalf of the Board

Syed Babar Ali Chairman

Karachi: 28 October 2009

DIRECTORS’ REPORT TO THE SHAREHOLDERS

04

Insurance

SHAMIM AHMAD KHANDirector

SYED HYDER ALIDirector

JALEES AHMED SIDDIQIPrincipal Officer & Chief Executive

SYED BABAR ALIChairman

CONDENSED INTERIM BALANCE SHEET

Note (Rupees i n ‘ 000 )

Un-audited30 September

2009

Audited31 December

2008

Share capital and reserves

Authorized capital100,000,000 (2008: 100,000,000) ordinaryshares of Rs. 10 each 1,000,000 1,000,000

Issued, subscribed and paid up capital [59,868,995(2008: 59,868,995) ordinary shares of Rs. 10 each] 598,689 598,689

Reserves 10,534,374 10,624,177Retained earnings 381,287 (376,347)

11,514,350 10,846,519

Underwriting provisions

Provision for outstanding claims [including IBNR] 391,365 366,620Provision for unearned premium 495,752 378,622Commission income unearned 59,488 56,733

Total underwriting provisions 946,605 801,975

Deferred taxation 84,556 -

Creditors and accruals

Premium received in advance 2,653 518Amounts due to other insurers/ reinsurers 211,090 75,730Accrued expenses 44,066 56,103

257,809 132,351

Borrowings

Long term finance - secured 7.1 80,000 320,000Short term finance - secured 534,672 1,047,527

Other Liabilities

Sundry creditors 50,916 50,303Unclaimed dividend 6,453 1,964

TOTAL LIABILITIES 1,961,011 2,354,120

TOTAL EQUITY AND LIABILITIES 13,475,361 13,200,639

05

Insurance

AS AT 30 SEPTEMBER 2009 (UN-AUDITED)





Note (Rupees i n ‘ 000 )


2009

Audited31 December

2008

Cash and bank deposits

Cash and other equivalents 375 53Current and other accounts 1,144 57,855Deposits maturing within 12 months - 200,352

1,519 258,260

Investments 8 12,097,138 11,709,948

Deferred taxation - 16,868

Other assets

Premiums due but unpaid - unsecured 207,936 169,916Amounts due from other insurers /

reinsurers - unsecured 250,767 189,374Accrued investment income 4,775 5,381Reinsurance recoveries against

outstanding claims 272,965 196,584Prepayments: - prepaid reinsurance premium ceded 203,375 187,671

- others 14,690 9,165Taxation - payments less provision 69,261 78,909Sundry receivables 67,237 76,032

1,091,006 913,032Fixed assets

Tangible 9Furniture, fixtures and office equipment 31,190 36,884Building 208,844 217,838Motor vehicles 45,664 47,809

285,698 302,531

TOTAL ASSETS 13,475,361 13,200,639

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

January to September

06

Insurance

Revenue accountNet premium revenue 53,847 89,346 237,204 69,911 450,308 414,364Net claims 1,247 (7,464) (111,652) (41,870) (159,738) (167,913)Expenses (40,824) (24,559) (42,600) (17,866) (125,848) (118,270)Net commission 48,128 24,825 (25,262) 591 48,281 41,534Underwriting result 62,399 82,148 57,690 10,767 213,003 169,715Investment income 24,628 157,796Rental income 13,038 9,290Other income 5,721 21,225Financial charges (108,504) (160,225)General and administration expenses (79,009) (82,378)

(144,126) (54,292)68,877 115,423

Share of profit from associates - net of tax 888,626 9,058Profit before taxation 957,503 124,481Taxation (140,000) (20,000)Profit after taxation 817,503 104,481Profit and loss appropriation accountBalance at the commencement of the year (376,347) 2,848,415Transferred to / from general reserve 89,803 (2,720,000)Transferred to share capital - (79,825)Final dividend Rs. 1.5 per share (2007: 1.5) (89,803) (47,895)Interim dividend Rs. 1 per share (2008: Rs. Nil per share) (59,869) -Profit after tax for the period 817,503 104,481Balance of unappropriated profits at the end of nine months 381,287 105,176

Earnings per share - basic and diluted - (Rupees) 13.65 1.75


Revenue accountNet premium revenue 20,010 32,444 86,691 25,895 165,039 135,731Net claims (4,885) (4,137) (45,339) (21,793) (76,154) (56,968)Expenses (13,390) (5,941) (11,886) (6,944) (38,160) (40,415)Net commission 11,383 6,438 (9,540) (1,183) 7,097 9,873Underwriting result 13,118 28,804 19,926 (4,025) 57,822 48,221Investment income 165,905 64,157Rental income 4,284 2,916Other income 1,008 7,685Financial charges (25,739) (63,010)General and administration expenses (20,964) (28,610)

124,494 (16,862)182,316 31,359

Share of (loss) from associates - net of tax - (13,665)Profit before tax 182,316 17,694Taxation (26,076) (7,999)Profit after tax 156,240 9,695Earnings per share - basic and diluted - (Rupees) 2.61 0.16

CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)





. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( Ru p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Aggregate2009

Marine,Aviation &Transport Miscellaneous

July to SeptemberAggregate

2008Restated

Fire &PropertyDamage Motor

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Aggregate2009Miscellaneous

Aggregate2008

Restated

Marine,Aviation &Transport

Fire &PropertyDamage Motor

07

Insurance

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)





Balance as at 1 January 2008restated (refer note 13) 319,301 3,267 30,000 35,762 - 8,034,711 2,848,415 11,271,456

Changes in equity for the nine months ended30 September 2008

Transferred to general reserve - - - - - 2,720,000 (2,720,000) -

Transferred to reserve for issue of bonus shares - - - - 79,825 - (79,825) -

Transferred to share capital 79,825 - - - (79,825) - - -

Final dividend for the year year ended 31 December 2007 - Rs 1.5 per share - - - - - - (47,895) (47,895)

Transferred to reserve for issue ofinterim bonus shares - - - - 199,563 (199,563) - -

Transferred to share capital 199,563 - - - (199,563) - - -

Profit after tax for the period ended30 September 2008- restated (refer note 13) - - - - - - 104,481 104,481

Balance as at 30 September 2008 598,689 3,267 30,000 35,762 - 10,555,148 105,176 11,328,042

Balance as at 1 January 2009 598,689 3,267 30,000 35,762 - 10,555,148 (376,347) 10,846,519

Changes in equity for the nine months ended30 September 2009

Transferred from general reserve - - - - - (89,803) 89,803 -

Final dividend for the year ended31 December 2008 - Rs. 1.5 per share - - - - - - (89,803) (89,803)

Interim dividend for the year ended31 December 2009 - Rs. 1 per share - - - - - - (59,869) (59,869)

Profit after tax for the period ended30 September 2009 - - - - - - 817,503 817,503

Balance as at 30 September 2009 598,689 3,267 30,000 35,762 - 10,465,345 381,287 11,514,350


Reservefor Bonus

Shares

Capital ReservesRevenueReservesShare Capital

Issued,Subscribedand Paid-up

Reserve forExceptional

Losses

Reservefor

Contingencies

Premiumon Issueof Shares

GeneralReserve

Unappro-PriatedProfit Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n t h o u s a n d ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reserves

08

Insurance

CONDENSED INTERIM CASH FLOW STATEMENT





30 September2008

30 September2009(Rupees in ‘000)

Operating cash flows

Underwriting activities

Premiums received 908,490 755,029Reinsurance premiums paid (326,173) (382,153)Claims paid (278,175) (403,917)Reinsurance and other recoveries received 66,803 151,789Commissions paid (77,273) (54,794)Commissions received 126,671 126,022

Net cash inflow from underwriting activities 420,342 191,976

Other operating activities

Income tax paid (28,929) (22,582)General management expenses paid (90,970) (121,472)Other operating payments (57,757) (93,003)Other operating receipts 15,597 29,458

Net cash outflow from other operating activities (162,058) (207,599)

Total cash inflow / (outflow) from all operating activities 258,284 (15,623)

Investment activities

Profit / return received 21,443 19,272Dividends received 258,476 146,248Payments for investments (409,657) (8,608,227)Proceeds from disposal of investments 656,929 8,197,200Redemption of TFCs 377 53,807Advances recovered - 179,662Fixed capital expenditure (14,945) (26,327)Proceeds from disposal of fixed assets 9,929 7,164

Total cash inflow / (outflow) from investing activities 522,554 (31,201)

Financing activities

Loans paid / received (240,000) 451,932Dividends paid (145,183) (47,359)Financial charges paid (139,541) (143,879)

Total cash (outflow) / inflow from financing activities (524,724) 260,694

Net cash inflow from all activities 256,114 213,870

Cash and cash equivalents at the beginning of the period (789,267) (975,291)

Cash and cash equivalents at the end of the period (533,153) (761,421)

09

Insurance

FOR THE NINE MONTHS PERIOD ENDED30 SEPTEMBER 2009 (UN-AUDITED)





Restated30 September

200830 September

2009(Rupees in ‘000)

Reconciliation to profit and loss account

Operating cash flows 258,284 (15,623)Depreciation (25,010) (23,694)Financial charges (108,504) (160,225)Profit on disposal of fixed assets 3,161 1,057Increase / (decrease) in assets other than cash 161,713 (27,835)(Increase) / decrease in liabilities other than term finances (386,295) 161,370Share of profit from associates - net of tax 888,626 9,058Provision for diminution in the value of available for sale investments (269,480) (41,526)Gain / (loss) on revaluation of trading investments 21,194 (2,565)

Others

(Loss) / profit on disposal of investments (5,500) 25,202Dividend and other investment income 279,313 179,262

Profit after taxation 817,503 104,481

Definition of cash

Cash comprises of Cash in hand, policy stamps, bank balancesand short term placements with banks which are readily convertibleto cash and which are used in the cash management function ona day-to-day basis

Cash for the purposes of the Statement of Cash Flows consists of:

Cash and other equivalents- Cash in hand 153 148- Stamps in hand 222 117

375 265Current and other accounts- Current Accounts 1,129 1,068- PLS Accounts 15 1,112

1,144 2,180Deposits maturing within 12 months- Cash with State Bank of Pakistan - 352- Term Deposit Receipts with banks - -

- 352Short term finance (534,672) (764,218)

(533,153) (761,421)


10

Insurance

CONDENSED INTERIM STATEMENT OF PREMIUMSFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)





Business underwritten inside Pakistan

Class

Class

PremiumsEarned

ReinsuranceCeded ClosingOpening

Prepaid ReinsurancePremium Ceded

Closing

Unearned PremiumsReserve

OpeningReinsurance

Expense

Net Premium Revenue

PremiumsWritten

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For The Three Months Period Ended 30 September 2009

30 Sep2009

30 Sep2008

Restated

PremiumsEarned

ReinsuranceCeded ClosingOpening

Prepaid ReinsurancePremium Ceded

Closing

Unearned PremiumsReserve

OpeningReinsurance

Expense

Net Premium Revenue

PremiumsWritten

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For The Nine Months Period Ended 30 September 2009

30 Sep2009

30 Sep2008

Restated

Direct and

facultative 1. Fire and property damage 308,778 149,381 189,057 269,103 239,777 124,509 149,030 215,256 53,847 50,975

2. Marine, aviation and transport 185,757 33,084 24,585 194,257 91,555 22,168 8,812 104,911 89,346 77,555

3. Motor 322,209 135,985 202,898 255,296 10,936 13,093 5,937 18,092 237,204 221,528

4. Miscellaneous 135,130 60,172 79,213 116,089 57,873 27,900 39,596 46,177 69,911 64,306

Total 951,874 378,622 495,752 834,744 400,141 187,670 203,375 384,436 450,308 414,364


Direct and



3. Motor 104,280 191,340 202,898 92,722 - 11,968 5,937 6,031 86,691 68,831

4. Miscellaneous 57,635 63,305 79,213 41,727 26,703 28,725 39,596 15,832 25,895 25,372

Total 329,691 454,253 495,752 288,192 133,540 192,987 203,375 123,152 165,039 135,731

11

Insurance

CONDENSED INTERIM STATEMENT OF CLAIMSFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)






Class

Direct and



3. Motor 35,175 56,472 69,446 48,149 3,500 7,355 6,665 2,810 45,339 32,512

4. Miscellaneous 18,075 40,471 143,878 121,482 4,756 23,288 118,221 99,689 21,793 12,564

Total 68,447 252,847 391,365 206,965 14,681 156,835 272,965 130,811 76,154 56,968

Class

ClaimsExpense

Reinsuranceand Other

RecoveriesReceived ClosingOpening

Reinsurance and OtherRecoveries in Respect of

Outstanding ClaimsClosing

Outstanding ClaimOpening


RecoveriesRevenue

ClaimsPaid

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net Claims Expense


30 Sep2009

30 Sep2008

ClaimsExpense


RecoveriesReceived ClosingOpening

Reinsurance and OtherRecoveries in Respect of

Outstanding ClaimsClosing

Outstanding ClaimOpening


RecoveriesRevenue

ClaimsPaid

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net Claims Expense


30 Sep2009

30 Sep2008

Direct and

facultative 1. Fire and property damage 31,681 160,846 149,347 20,182 24,048 135,719 133,101 21,429 (1,247) 18,306


3. Motor 136,370 90,121 69,446 115,694 11,062 13,685 6,665 4,042 111,652 115,559

4. Miscellaneous 78,656 65,863 143,878 156,671 14,670 18,090 118,221 114,801 41,870 21,207

Total 278,176 366,621 391,365 302,920 66,803 196,585 272,965 143,182 159,738 167,913


12

Insurance

CONDENSED INTERIM STATEMENT OF EXPENSESFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)


Class

Class

Direct and

facultative 1. Fire and property damage 23,071 - - 23,071 40,824 63,895 71,200 (7,304) (1,428)

2. Marine, aviation and transport 16,228 - - 16,228 24,559 40,787 41,053 (266) 3,713

3. Motor 25,262 - - 25,262 42,600 67,862 - 67,862 56,664

4. Miscellaneous 11,072 - - 11,072 17,866 28,938 11,663 17,275 17,788

Total 75,634 - - 75,634 125,848 201,482 123,915 77,567 76,737


CommissionPaid orPayable

NetCommission

Expense

Other Man-agementExpenses

Under-writing

Expenses

Commissionfrom

Reinsurers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net Underwriting Expenses


Deferred Commission

ClosingOpening30 Sep2009

30 Sep2008

CommissionPaid orPayable

NetCommission

Expense

Other Man-agementExpenses

Under-writing

Expenses

Commissionfrom

Reinsurers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net Underwriting Expenses


Deferred Commission

ClosingOpening30 Sep2009

30 Sep2008

Direct and

facultative 1. Fire and property damage 13,022 - - 13,022 13,390 26,412 24,406 2,007 4,794

2. Marine, aviation and transport 4,964 - - 4,964 5,941 10,905 11,402 (497) 557

3. Motor 9,540 - - 9,540 11,886 21,426 - 21,426 17,924

4. Miscellaneous 5,187 - - 5,187 6,944 12,131 4,004 8,127 7,269

Total 32,714 - - 32,714 38,160 70,874 39,811 31,063 30,544





13

Insurance

CONDENSED INTERIM STATEMENT OF INVESTMENT INCOMEFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)





2009......................... ( R u p e e s i n ‘000) .........................

2008

Three Months PeriodEnded 30 September

Nine Months PeriodEnded 30 September

2009 2008

Income from trading investments

Gain/(loss) on trading (i.e. buying and selling difference) 7,510 (9,007) 158 (17,340)Dividend income (earned while holding the securities) - 1,989 31 4,764

7,510 (7,018) 189 (12,576)Income from non-trading investments

Held to maturityReturn on Government Securities 2,259 - 6,891 98Return on other fixed income securities and deposits 2,245 4,161 13,946 17,712

4,504 4,161 20,837 17,810

Available for saleDividend income 135,413 62,194 258,445 156,688(Loss)/gain on sale of available for sale investments (16,757) 3,810 (5,657) 42,542

118,656 66,004 252,788 199,230

Gain / (loss) on revaluation of trading investments 1,030 2,013 21,194 (2,565)

Provision for diminution in value ofavailable for sale investments 34,405 - (269,480) (41,526)

Less: Investment related expenses (200) (1,003) (900) (2,577)

Net investment income 165,905 64,157 24,628 157,796


14

Insurance

NOTES TO THE CONDENSED INTERIMFINANCIAL STATEMENTSFOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009 (UNAUDITED)

1. THE COMPANY AND ITS OPERATIONS

IGI Insurance Limited ("the Company"), a Packages Group company, was incorporated as a publiclimited company in 1953 under Companies Ordinance, 1984 and is quoted on the Karachi and LahoreStock Exchanges in Pakistan. The Company is engaged in providing General Insurance Services inspheres of Fire, Marine, Motor and Miscellaneous. The registered office of the Company is situated at7th Floor, The Forum, Suite No. 701-713, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi.

2. BASIS OF PRESENTATION

These condensed interim financial statements are unaudited and is being submitted to the shareholdersin accordance with the listing regulations of Karachi and Lahore Stock Exchanges and section 245 ofthe Companies Ordinance, 1984. These condensed interim financial statements are being presentedin condensed form in accordance with the requirements of "International Accounting Standard - InterimFinancial Reporting (IAS-34)" as applicable in Pakistan and in the format prescribed by Insurance Divisionof Securities and Exchange Commission of Pakistan (SECP) in its Circular No. 7 of 2003 dated 27August 2003.

These condensed interim financial statements do not include all the information and disclosures requiredin the annual audited financial statements, and should be read in conjunction with the Company's annualfinancial statements for the year ended 31 December 2008.

There are no comprehensive income to be reported for the period ended 30 September 2009 and 2008.

3. ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these condensed interim financial statements arethe same as those applied in the preparation of annual financial statements of the Company for the yearended 31 December 2008.

During the period, International Accounting Standard 1 (Revised) 'Presentation of Financial Statements'and International Financial Reporting Standard 8 'Operating Segments' became effective for annualperiods beginning on or after 1 January 2009 and have resulted in increased disclosures.

IFRS 4- Insurance Contracts, became effective for the annual periods beginning on or after 1 January2009. However, Securities and Exchange Commission of Pakistan through its circular no.22/2009 dated30 June 2009 has deferred the applicability of certain requirements of IFRS 4 for the purpose of thequarterly accounts for 1st, 2nd and 3rd quarters of the year 2009. Other related requirements of IFRS4 have no impact on these condensed interim financial statements.

4. SIGNIFICANT ESTIMATES AND JUDGMENTS

The preparation of the condensed interim financial statements requires management to make judgments,estimates and assumptions that affect the application of accounting policies and the reported amountsof assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgments made by managementin applying the Company's accounting policies and the key sources of estimating uncertainty were thesame as those applied to the annual financial statements for the year ended 31 December 2008.

5. FINANCIAL RISK MANAGEMENT

The financial risk management objectives and policies are consistent with those disclosed in the annualfinancial statements of the Company for the year ended 31 December 2008.

15

Insurance

6. PREMIUM DEFICIENCY RESERVE

No provision for premium deficiency has been made as the unearned premium reserve for each classof business as at the end of nine months is adequate to meet the expected future liability, after reinsurance,from claims and other expenses, expected to be incurred after the balance sheet date in respect ofpolicies in force at the balance sheet date.

7. BORROWINGS

7.1 Long term finance - secured

Opening Balance 320,000 400,000Add: Disbursements during the period - -Less:Repaid during the period 240,000 80,000

Closing Balance 80,000 320,000

8. INVESTMENTS

The investments comprise of the following:Equity instruments of associated companies

- quoted * 4,887,198 3,978,543- unquoted 131,892 151,921

5,019,090 4,130,464

Held to maturity 121,662 121,668

Available for sale

- quoted * 7,443,428 7,666,408- unquoted 177,337 177,337

7,620,765 7,843,745

Provision for diminution in the value of availablefor sale investments (673,103) (403,623)

6,947,662 7,440,122

Held for trading 8,724 17,694

12,097,138 11,709,948

* Market value of investments as at 30 September 2009 is Rs. 9,645 million (31 December 2008:Rs. 8,533 million).

9. FIXED ASSETS

Opening book value 302,531 309,283Add: Additions during the period / year 14,945 32,675

317,476 341,958

Less: Written down value of disposal 6,768 7,552Less: Depreciation for the period / year 25,010 31,875

31,778 39,427

Closing book value 285,698 302,531

(Rupees i n ‘ 000 )


2009

Audited31 December

2008

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Insurance

10. TRANSACTIONS WITH RELATED PARTIES

Related parties comprise associated undertakings, other related companies, directors of the companyand post employment benefit plans. The company in the normal course of business carries outtransactions with various related parties. All transactions with related parties have been carried out oncommercial terms and conditions.

Premium Underwritten 379,079 318,229

Premium Collected 412,779 308,122

Claims paid 51,921 111,838

Commission paid 13,496 10,665

Interest expense 12,640 7,518

Interest income - 3,331

Rental Income 13,038 9,290

Dividends received 223,907 107,984

Contribution to retirement benefit fund 4,492 3,920

Key management personnel compensation 27,060 20,531

Investment in units 35,000 -

Redemption of units 236,036 9,864

Period-end balances:

Premium receivable 87,498 76,978

Commission payable 11,483 11,700

11. SEGMENT REPORTING

There has been no change in the basis of segmentation or the measurement basis of segment profitor loss since 31 December 2008. Class of business wise revenue and results have been disclosed inthe condensed interim statement of premiums and profit and loss account, respectively, prepared inaccordance with the requirement of Insurance Ordinance, 2000 and the SEC (Insurance) Rules, 2002.

Segment wise assets as of 30 September 2009 are as follows:

Segment assets 614,338 549,064 190,621 225,916 209,311 195,023 273,708 152,107 1,287,978 1,122,110

Unallocated corporate assets 12,187,383 12,078,529

Consolidated total assets 13,475,361 13,200,639

Fire and PropertyDamage

Marine, Aviation andTransport Motor Total

20082009 20082009 20082009 2008200920082009Miscellaneous

. . . . . . . . . . . . . . . . . . . . . . . . . ( R u p e e s i n ‘ 0 0 0 ) . . . . . . . . . . . . . . . . . . . . . . . . .

( Rupees i n ‘ 000 )

Un-audited30 Sep2009

Audited31 December

2008

January to September

2009 2008

(Rupees i n ‘ 000 )

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12. DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements are authorised for issue by the Board of Directors of theCompany on 28 October 2009.

13. CORRESPONDING FIGURES

Corresponding figures have been re-arranged, wherever necessary, for the purpose of comparison. TheCompany changed its accounting policy in relation to recognition of administrative surcharge duringthe year ended 31 December 2008. As per the new policy, administrative surcharge is being deferredand charged to profit and loss account as revenue in accordance with the pattern of recognition of theinsurance premium to which it relates. In the annual financial statements 31 December 2008, changein accounting policy was applied retrospectively and accordingly the unappropriated profits, profit forthe period and the earnings per share for the period ended 30 September 2008 were restated.

14. GENERAL

Figures in this condensed interim financial statements have been rounded off to the nearest thousandof rupees.

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Insurance

IGI INSURANCE BRANCH OFFICES

Lahore

First Floor, 5-F.C.C.,Syed Maratib Ali Road, Gulberg,Lahore - 54660.Phone : 92-42-35753404 - 06

: 92-42-35763840: 92-42-35763890

Fax : 92-42-35752338: 92-42-35763542

E-mail : [email protected]

Karachi

Bunglow No. D-32, Block 2,Kehkashan, Clifton,Karachi - 74000.Phone : 92-21-35831030 - 32Fax : 92-21-35821945 - 46E-mail : [email protected]

Sialkot

Suite No. 10 & 11, First Floor,Soni Square, Khadim Ali Road,Mubarik Pura, Sialkot.Phone : 92-52-3258437Fax : 92-52-3258438E-mail : [email protected]

Gujranwala

Anwar Industries Complex,Block B-1, G.T. Road,Gujranwala.Phone : 92-55-4294260 - 72Fax : 92-55-4294273E-mail : [email protected]

Multan

Mezzanine Floor,Abdali Tower, Abdali Road,Chowk Nawa Shehar, Multan.Phone : 92-61-4784402

: 92-61-4500179Fax : 92-61-4784403E-mail : [email protected]

Islamabad

Mezzanine Floor,Razia Sharif Plaza,90, Blue Area, G/7, Islamabad.Phone : 92-51-2277355

: 92-51-2273840Fax : 92-51-2277356E-mail : [email protected]

Faisalabad

Second Floor, Sitara Tower,Bilal Chowk, Civil Lines,Faisalabad.Phone : 92-41-2629416Fax : 92-41-2629415E-mail : [email protected]

insurance · 2009. 10. 30. · unappro-priated profit total..... (rupees in thousand) ........

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